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Enclosure: (14) to COMDTINST M1710.13<br />

6. Riaht of.First Refusal. Upon termination of this<br />

Agreement, Cosponsors shall have the right of first refusal to<br />

renew this Sponsorship Agreement provided the Coast Guard conducts<br />

this event during this time frame in (vear) . As used herein,<br />

the right of first refusal shall mean that ifFund receives a<br />

"bonafide offer" (as hereinafter defined) regarding sponsorship<br />

from a third party, then Fund shall be obligated to communicate<br />

such offer to Cosponsors, and permit cosponsors at its option to<br />

offer to contract with Fund, either individually or as Cosponsors,<br />

on terms no less favorable to Fund than those contained in the<br />

bonafide offer of the third party. In no event shall Fund enter<br />

into a contract with a third party upon terms and conditions more<br />

favorable to such third party than those offered to Cosponsors,<br />

unless such terms have first been offered to Cosponsors. As used<br />

herein, the term "bonafide offer" shall mean a proposed agreement<br />

concerning rights and obligations similar to those herein, which<br />

agreement if executed by Fund and the third party, would be legally<br />

binding.<br />

7. Comnetitive Advertisinq. Fund warrants and agrees that it<br />

has not, and during the term hereof will not, grant to anyone that<br />

the Cosponsors the right to sponsor or advertise during the event<br />

and products competitive with Products.<br />

8. Indemnification. The Fund agrees to defend, indemnify and<br />

hold Cosponsors harmless from and against all claims, suits,<br />

liabilities, costs and expenses, including reasonable attorney's<br />

fees for injury to, including death of persons (whether they be<br />

third persons or employees of either parties hereto) -or' any loss or<br />

damage of property in any manner arising from the advertising and<br />

sponsorship rights conveyed therein or for any injury to, including<br />

death of persons arising from participation in the event, with the<br />

understanding that this obligation shall not apply to any loss<br />

caused solely by the negligence of Cosponsors.<br />

9. Insurance. The Fund shall obtain and maintain in force,<br />

adequate insurance satisfactory to cover the indemnification in<br />

paragraph 8 above. The Fund shall include Cosponsors as,additional<br />

insured under its Consolidated Self-Insurance Program.. The<br />

Consolidated Self-Insurance Fund shall provide for thirty (30) days<br />

written notice to the Cosponsors in the event of cancellation,<br />

material change.or nonrenewal.<br />

10. Indedendent Contractor. Cosponsors and.the F'und shall be<br />

and act as independent contractors, and under no circumstances<br />

shall this agreement be construed as one of agency, partnership or<br />

joint venture of employment between the Fund, sponsor and<br />

Cosponsor. None of the personnel under contract to, employed by or<br />

volunteering for the Fund shall be deemed in any way to have any<br />

contractual relationship with Cosponsors whatsoever. The Fund<br />

shall be solely responsible for the conduct of its employees,<br />

personnel and agents in connection with their performance of the<br />

Fund's obligation hereunder.<br />

3 CH-4

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